Relief at Spain bailout package proves short-lived

Market relief that Spain had secured European Union help to save its banking sector quickly turned to concern Monday, as investors began to question the mechanics of the €100 billion ($124.68 billion) loan package and whether the country could manage the extra debt or be forced ask for more help.

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MADRID — Market relief that Spain had secured European Union help to save its banking sector quickly turned to concern Monday, as investors began to question the mechanics of the €100 billion ($124.68 billion) loan package and whether the country could manage the extra debt or be forced ask for more help.

(LONDON) — The rally in stock markets in the wake of the Cypriot bailout deal proved short-lived Monday as investors remained cautious following a crisis that laid bare the scale of problems surrounding Europe‘s single currency. In the immediate aftermath of the deal between the Mediterranean island nation and international creditors, stocks rallied strongly and the euro edged back up above the $1.30 mark. But as the day wore on, the optimism was running dry.

(LONDON) — The rally in stock markets in the wake of the Cypriot bailout deal proved short-lived Monday as investors remained cautious following a crisis that laid bare the scale of problems surrounding Europe‘s single currency. In the immediate aftermath of the deal between the Mediterranean island nation and international creditors, stocks rallied strongly and the euro edged back up above the $1.30 mark. But as the day wore on, the optimism was running dry.

The total amount of Greek government debt outstanding has grown so much over the last 15 months that it has retraced over 60% of the 'haircut'-based reduction and has jumped a stunning 14.5% in that period. As KeepTalkingGreece notes, this is despite three years of strict austerity measures, incredible taxes and a debt haircut of 53% (~100billion euros in March 2012).

(BRUSSELS) — Greece is on its way to getting the next installment of its much-needed bailout loans after finance ministers from the 17 European Union countries that use the euro agreed on a program to reduce the country’s debt. The first disbursement will take place Dec. 13, said Jean-Claude Juncker, head of the eurogroup of finance ministers, which made the decision early Tuesday. Mario Draghi, President of the European Central Bank, welcomed the agreement. “It will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece,” Draghi said.

MADRID (Reuters) - Spain's 10-year borrowing costs fell to their lowest level since January in an auction on Thursday, although the relief from market pressure may be short lived as Prime Minister Mariano Rajoy hesitates over seeking an international bailout.

MADRID (Reuters) - Spain's 10-year borrowing costs fell to their lowest level since January in an auction on Thursday, although the relief from market pressure may be short lived as Prime Minister Mariano Rajoy hesitates over seeking an international bailout. The yield on the benchmark 2022 bond fell to 5.666 percent with almost three times more offered than the amount sold. Demand was also strong for a three-year bond. The Treasury sold a total of 4.8 billion euros ($6.27 billion) in the bonds, above its target. ...

NICOSIA — Cypriot President Nicos Anastasiades, seeking a last-minute reprieve from financial meltdown at talks in Brussels on Sunday, has a “very difficult task” ahead of him if he is to save the island’s economy, a government spokesman said.
With Cyprus facing a Monday deadline to avert a collapse of its banking system and potential exit from the euro, late night talks in Nicosia to seal a bailout from the EU and International Monetary Fund broke up without result.